Progress Report:
Business Plan / Strategic Plan
2009 – 10
Select Committee: 5th May 2010
Overall Responsibility:
Director General: Mr J Manyi
Progress Report as of 31st December 2009
ITEM
TOPIC
1.
The DoL Strategic thrust geared for service delivery
2.
Programmes / Branches of the DoL
3.
Key Result Areas of the DoL (KRA’S) - Targets
 Progress
 Constraints
 Corrective Measures
 Financial Performance
4.
Challenges of the Department
5.
Assistance by the Select Committee
2
The Core Functions of DoL
 Employment Services (ES) and
 Inspection and Enforcement Services (IES)
3
Programmes / Branches of the DoL
Programme 1: Administration









Chief Operations Officer
Internal Audit
Risk Management
Security Services
Communication
Human Resources Management
Information Technology
Legal Services
Chief Financial Officer
- Financial Management
- Financial Liaison: Public Entities
- Office Administration and Supply Chain Management
Programme 2: Inspection and Enforcement Service (IES)
Programme 3: Public Employment Services (PES)
Programme 4: Labour Policy and Labour Market Programmes (LP & LMP)
4
DoL Strategic / Business Plan 2009/10

Key aspects of the DoL’s Strategic Plan / Business Plan 2009/10

Targets

Performance against key targets

Failure to achieve targets (constraints) and the reasons

Corrective Action
5
KRA 1: Contribute to Employment Creation 6
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators as of the 31st Dec 09
1. 6 500 permanent
jobs registered on the
Public Employment
Services (PES)
Database.
 6 123 formal/ permanent jobs
were registered on ESSA.
 21 074 short term job
opportunities were registered on
ESSA.
 1 904 learning opportunities were
registered on the ESSA database
(See Annexure 1 for
PES breakdown per
Province: Report
attached)
IMPL.
BRANCH
Public
Employment
Services
(PES)
STATUS
KRA 1: Contribute to Employment Creation 7
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
2. At least 65% of
employment
opportunities on the
database are filled
within 90 days.
 6 845 registered job
opportunities were filled within 90
days.
 41 210 unemployed people were
provided with career’s information.
 5 937 job seekers assessed.
 13 082 job seekers were counseled.
 18 self help career counselling
information brochures were printed
and distributed.
IMPL.
BRANCH
PES
STATUS
KRA 1: Contribute to Employment Creation 8
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
2. Employment
opportunities on the
database are filled
through partnerships
 Partnerships developed with
the Bombela Municipality is yielding
positive results for the unemployed
people in the Mpumalanga area.
 Partnerships developed with Sasol
resulted in the latter using DoL
database to recruit for all their staff
requirements.
 Partnerships is being extended to
their big Sasol plant in the Free
State.
IMPL.
BRANCH
PES
STATUS
KRA 1: Contribute to Employment Creation
9
Public Employment Services (PES)
Constraints:
 ESSA system was not fully functional and the economic recession
impacted on the number of opportunities referred to DoL.
 45 Employment Services counsellors employed to service only 45
labour centres out of a total of 125.
Corrective Action:
 Optimised ESSA System went live as from 23 March 2010.
 The DoL will increase networking with Government Departments and
the Private sector to use DoL ESSA.
KRA 1: Contribute to Employment Creation
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
3. Draft Public
 Draft Bill has been developed.
Employment Services
Policy and Bill finalized  PES Organogram for HO
by March 2010.
component approved.
PES
10
STATUS
KRA 1: Contribute to Employment Creation 11
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
4. Response to the
economic crisis
through the training
of the layoffs
IMPL.
BRANCH
 R2,4 billion
(R1.2 billion NSF + R1.2 billion UIF)
Training Lay Off Scheme assists
companies willing to participate
in alternatives training schemes
instead of retrenching workers.
 By end March 2010 companies,
along with the associated trade
unions, entailing approximately
3,286 workers were participating in
the scheme.
 The CCMA has, through its
interventions, saved 16 530 jobs in the
period January 2009 to 31 March 2010.
PES
STATUS
KRA 1: Contribute to Employment Creation
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
4. Response to
the economic crisis
 A pilot project involving 740
retrenched and unemployed learners
at a cost of about R50 million is
currently underway in Gauteng.
 The project aims to test how best the
UIF and NSF can facilitate re-entry
into employment.
 The pilot project will be evaluated
and depending on its success rate, it
may be rolled out to other Provinces.
IMPL.
BRANCH
PES
12
STATUS
KRA 1: Contribute to Employment Creation
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
4. Response to the
economic crisis
 An amount of R29 million was allocated
to Productivity SA under the NSF towards
the entities Social Plan programme to
develop turn around strategies to
companies facing possible closures due to
tough competition or economic crisis.
 138 future forums were established;
 9 826 jobs impacted upon;
 82 strategies developed;
 161 proactive future forums established;
 91 early warning systems established and
 8 desktop research conducted on sectors.
PES
13
STATUS
KRA 1: Contribute to Employment Creation
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
4. Save jobs through
strategic investments

The Department has set aside
under the UIF an amount of
R2 billion for investment with the
Industrial Development
Co-operation (IDC).
 The IDC will in turn invest in
industries that are willing to save
jobs or to invest in new job
creation ventures.
UIF
14
STATUS
KRA 1: Contribute to Employment Creation
Constraints
 Slow uptake - retrenchment packages preferred.
 Employers not willing to provide detailed information confirming their
distress status to the CCMA.
 Insufficient marketing of the Training Layoff Scheme (TLS).
Corrective Action
 Improved marketing of the TLS scheme.
 Address identified challenges with NEDLAC social partners.
 Review or add categories of companies and workers to be assisted.
15
KRA 2: promote Equity in the Labour Market
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
STATUS
BRANCH
Q3 Indicators
Amendment Bill
on EEA
finalised by 31
March 2010.
 The Bill is being finalised for approval.
Follow-ups
 67 companies have been reviewed.
conducted on
60 JSE listed
 Copies of DG signed letters were
companies DG
sent to the CEO’s of 67 companies
Reviewed by 31
approving their respective EE Plans.
March 2010
16
LP
&
LMP
KRA 4: Protecting vulnerable workers
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
Monthly Blitz
Inspections
conducted
Enforce
compliance with
all labour
legislation to 75%
of inspected
workplaces by
2011/12
(See Annexure 2 and 2.1
for breakdown per
province)
 122 459 work places inspected and
80% compliance levels were
recorded.
17
IMPL.
STATUS
BRANCH
SD
(IES)
KRA 4: Protecting vulnerable workers
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
Conduct focused
advocacy in
inspections and
enforcement in the
Hospitality and
Security sectors.
 3 741 work places were inspected in
the hospitality sector with 44 %
compliance levels recorded.
Each Province to
identify companies
and conduct
inspections in these
sectors for focused
inspections as
follows:
 1 560 work places were inspected in
the security sector (717 did not
comply with the sectoral
determination).
Hospitality
Security
30
20
(See Annexure 2 and 2.1
for breakdown per
province)
IMPL.
STATUS
BRANCH
SD
(IES)
18
KRA 4: Protecting vulnerable workers
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
Enhance the
visibility of the
Inspectorate
through improved
corporate image.
 The procurement of the Green cars
has been finalized, cars have already
been serviced and are being
branded.
 Uniform for the inspectors have been
procured from the Sheltered
Employment Factories.
IMPL.
STATUS
BRANCH
SD
(IES)
19
KRA 4: Protecting vulnerable workers
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
Submit an options
paper on
regulation of
labour brokers to
the Minister of
Labour and Table
paper at NEDLAC
 A concept paper on labour broking
was tabled at NEDLAC for discussion.
 3 Task Team meetings were attended
to discuss labour broking. There were
areas of agreement and
disagreement.
 Draft legal amendments on labour
broking are being finalised.
LP
&
LMP
20
STATUS
KRA 4: Protecting vulnerable workers
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
Draft Bills on LRA
& BCEA released
for public
comment
 LRA and BCEA Bills are being
finalised.
LP
&
LMP
STATUS
21
Strengthen Institutional Capacity of DoL
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
Develop an
internationally
benchmarked
DoL
organisational
design through
the ILO Technical
Assistance
The ILO after receiving the Technical report and this
led to the following outcomes:
 The DoL Service Delivery Model and the
management structure at HQ with the key
functional areas of labour administration
systems, benchmarked with ILO standards
and international best practice.
 Clarifying the organisation and role of IES
and designing the IES Branch structure at HQ.
 Clarifying the organisation and role of PES
and designing the PES Branch structure at HQ.
 Clarifying the organisation and role of LP &
LMP at HQ.
 Creation of the office of the COO.
SD
(IES)
22
STATUS
Strengthen Institutional Capacity of DoL
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
Finalise the transfer of
Skills Development to
Higher Education and
Training
Establish one
Gauteng Provincial
Office
Reduce audit queries
and improve
corporate governance
 The transfer has been finalised.
IMPL.
BRANCH
Admin
 Minister has approved the consolidated
provincial office.
 Cannot be measured at this point : Only
one interim report from the AG – for HQ
released so far.
 Interim report from the AG, for all the
provinces still outstanding. A clear picture
of the audit queries will emerged once full
report is released.
CFO
23
STATUS
Strengthen Institutional Capacity of DoL
Q4 TARGET
PERFORMANCE MEASURES
IMPL.
BRANCH
Q3 Indicators
Reduce the
vacancy rate
 As of 26 March 2010 the PERSAL report
reflect about 14% vacancy rate after taking
out the vacant posts transfer to DHET.
(Vacancy rate includes posts that are in
process of being filled).
 As of 26 March 2010 vacancy rate reduced
to 6.76 % compared to 15.94 % on the 30
September 2009.
(The 6.76% vacancy rate excludes posts that
are in process of being filled).
 A significant number of these positions will
be filled as new incumbents assume duty
on the 1st April 2010.
Admin
24
STATUS
Strengthen Institutional Capacity of DoL
Q4 TARGET
PERFORMANCE MEASURES
Q3 Indicators
Improve the
management of the
IT PPP Contract
with Siemens
Identify and
document all
outstanding items
as agreed in the
PPP and agree on
an implementation
plan to finalise
these within the
contract period
 Plans are in place to accelerate delivery
of improvement systems and DDG’s are
championing the implementation of the
plans.
IMPL.
BRANCH
Admin
25
STATUS
Expenditure – 31 MARCH 2010
 Adjusted Budget :2009/10
 Main divisions of the vote( Including ESDS & HRD): 2009/10
Outcome.
 Main divisions of the vote( Excluding ESDS & HRD): 2009/10
Outcome
 Spending Pressures
 Percentage variance and reasons
 DoL Medium Term Budget
26
Adjusted Budget :2009/10
27
SUMMARY OF EXPENDITURE ESTIMATES BY PROGRAMME
Voted
Additional appropriation
Total Adjusted
(Main Roll-over Unforseeable/ Virement Shifting of
unavoidable and shifts functions adjustments appropriatio
appropriation)
due to Within Between
n
savings the votes
R thousand
vote
1. Administration
392,500 3,965
2,190 (10,000) (3,845) 388,655
2. Service Delivery
777,121 14,238
13,364 (20,000) 7,602 784,723
3. Employment and Skil s Development Services/ Human Resources481,Devel
227opment 1,493
- (75,770) (74,277) 406,950
4. Labour Policy and Labour Market Programmes
466,547 4,432 30,000 34,432 500,979
5. Social Insurance
8,977 8,977
Total of programmes
2,126,372 18,203
21,479
- (75,770) (36,088) 2,090,284
Main divisions of the vote (Including ESDS & HRD):
2009/10 Outcome
28
VOTE 15: LABOUR
PROGRAMME
Administration
Service Delivery
Empl. & Skills Dev. Services / Human Res. Dev.
Labour Policy & Labour Market Programmes
Social Insurance
TOTAL
ADJUSTED
BUDGET
Oct-09
R'000
384,009
741,108
406,950
549,240
8,977
2,090,284
ACTUAL
EXP
31-Mar-10
R'000
ACTUAL
%
DEVIATION VARIANCE
R'000
419,995 (35,986)
710,368 30,740
390,643 16,307
536,437 12,803
6,013 2,964
2,063,456 26,828
-9.4%
4.1%
4.0%
2.3%
33.0%
1.3%
Main divisions of the vote (Excluding ESDS & HRD):
2009/10 Outcome
29
VOTE 15: LABOUR
PROGRAMME
Administration
Service Delivery
Empl. & Skills Dev. Services / Human Res. Dev.
Labour Policy & Labour Market Programmes
Social Insurance
TOTAL
ADJUSTED
BUDGET
Oct-09
R'000
384,009
741,108
549,240
8,977
1,683,334
ACTUAL
EXP
31-Mar-10
R'000
ACTUAL
%
DEVIATION VARIANCE
R'000
419,995 (35,986) -9.4%
710,368 30,740 4.1%
0.0%
536,437 12,803 2.3%
6,013 2,964 33.0%
1,672,813 10,521 0.6%
Spending Pressures
The following amounts have been vired to institutions
associated with the DoL:
 R62 million to the Commission for Conciliation
Mediation and Arbitration (CCMA).
 R17.9 million to the SEF.
 R5 million to NEDLAC.
30
Economic classification( Including ESDS & HRD):
2009/10 Outcome
Total: DoL
Current Payments
Transfers and Subsidies to:
Payments for Capital Assets
Total:
31
Budget Expenditure Variance %
Allocation as at 31
Variance
March 2010
1,238,029 1,245,352 -7,323 -0.59%
794,281
792,571
1,710 0.22%
57,974
25,533 32,441 55.96%
2,090,284 2,063,456 26,828 1.28%
2009/10 Outcome
32
Current payment:
 Slow process on filling of vacancies lead to slow spending in Compensation of
Employees.
 Amount invoiced by DPW on Rental and Leases exceeded what was originally
budgeted.
Transfers and subsidies:
 Claims for injuries on duty for civil servants less than anticipated.
 Unexpected severance packages taken by officials that could not have been
foreseen during the 2009 ENE process lead to over expenditure.
Capital payments:
 Delays have been experienced with regard to Capital projects on office
buildings for Labour Centres.
NB: Under expenditure amounting to R16,3 million from Programme 3: ESDS/HRD was
granted a blanket roll-over to the Department of Higher Education and Training as start
up capital.
DoL MEDIUM TERM BUDGET
33
Medium-term estimates
Summary of expenditure estimates by programme
R thousand
1. Administration
2. Inspection and Enforcement Services
3. Public Employment Services
4. Labour Policy and Labour Market Programmes
Total for programmes
MTEF Baseline
2010/11
2011/12
2012/13
% growth
% growth
From 10/11
From 11/12
000 to 11/12 000 to 12/13 000
649,997 6.25% 690,635 3.67% 716,009
356,603 6.65% 380,306 3.06% 391,936
280,420 4.27% 292,407 5.61% 308,802
496,869 1.27% 503,202 4.48% 525,746
1,783,889 4.63% 1,866,550 4.07% 1,942,493
 Key challenges facing the DoL
 How are these being addressed
CHALLENGES
35
1. Distinct economy patterns – One is advanced and industrialised and well
developed with highly skilled people, the other is characterised by high levels of
poverty, poor labour standards and informal work relations.
2. High levels of unemployment – Two-fold crisis:
 Unskilled most likely to loose jobs during periods of employment contraction
and least likely to be hired.
 The youth which constitutes 75% of the unemployed.
3. Inequalities and unfair discrimination in the work place despite the introduction of
progressive labour market policies since 1994.
4. Changing nature of work to atypical forms of employment such as casual labour,
temporary and seasonal work, labour broking, outsourcing and subcontracting.
5. Domestic and cross border migration:
 People from rural areas (mostly unskilled) migrate to urban areas in search of
employment.
 Economic refugees settled in South Africa hoping to find employment.
CHALLENGES
36
6. The requirement of very specific skills for redress: Insufficient integration between
supply and demand of skills is adding to a large number of unemployed graduates.
7. Strengthening labour market institutions and agencies:
 Compliance monitoring and enforcement structures (Labour Inspectorate
Services, CCMA and Bargaining Councils).
 Increasing our capacity to carry out our mandate.
 Ensuring efficient and effective system of OHS fully integrated with a system
of compensation for occupational injuries and diseases.
 Non- compliance breeds unfair competition.
 Interventions to mitigate new forms of vulnerability mainly through atypical
forms of work.
8. Development and implementation of effective instruments for constant performance
monitoring and review of the impact of labour market policies.
Strategic Plan/Business Plan 2010/11
 Measurable Objectives (Key Targets) for 2010/11 as reflected in
our strategic plan 2010 - 2015
37
Inspection and Enforcement Services (IES)
Measureable objectives:
 Ensure decent work principles are adhered to by enforcing compliance
with labour legislation by employers and employees by 2011, through
regular inspections.
 Achieve a reduction in the socio economic cost of workplace injuries and
diseases incidents by 2010/11 through regular audit and inspections to
ensure the health and safety of workers.
 Improve compliance with all labour legislation related to the protection of
vulnerable workers in targeted sectors, including small, medium and
micro enterprises, through targeted campaigns and regular inspections.
38
Inspection and Enforcement Services (IES)
Measureable objectives: (Cont)
 Ensure transformation of the labour market by achieving compliance
with the Employment Equity Act (1998) by 2010/11 through awareness
raising and regular inspections and audits.
 Reduce silicosis by completing the baseline study on the prevalence of
silicosis in the non-mining sector by April 2010.
 Reduce exposure to silica by 20% by 2014 by:
• Establishing provincial silicosis working groups to conduct
awareness raising road shows on the dangers of silica dust.
• Assisting companies to develop programmes for the control of
exposure to silica dust.
• Conducting regular inspections.
• Complete baseline study on prevalence of silicosis in non-mining
sectors.
39
Inspection and Enforcement Services (IES)
40
Measureable objectives: (cont)
 Reduce noise related injuries by reducing exposure to noise at the
workplace by 20% by 2014 through the use of baseline study, inspections
and awareness campaigns.
 Reduce workplace injuries by at least 2% by:
•
•
Identify 20 major high risk sector companies for full compliance
auditing in 2010/11.
Improving compliance in the high risk sectors by 80% by 2014 by
conducting inspections.
Public Employment Services (PES)
41
Measureable objectives:
 Facilitate the entry and re-entry of job seekers into the labour market
through pro-active measures to address unemployment and poverty by
finalising the Public Employment Services Policy and the Employment
Services Bill by September 2010.
 Reduce unemployment by placing unemployed people in decent
work through:
• Filling at least 60% opportunities on the public employment services
database within 30 days of registration of job opportunities on the
system by 2011/12.
• Referring at least 70% of unemployed people registered on the public
employment services database to career counselling, training or
workplace opportunities or sheltered employment factories,
Unemployment Insurance Fund and the Compensation Fund within
30 days by 2011/12.
Public Employment Services (PES)
42
Measureable objectives: (cont)
 Assist in reducing unemployment by providing employment services
interventions to distressed companies within 5 days of receiving
notification.
 Facilitate the employment of 500 people with disabilities and/or veterans
by persuading so that at least 30% of government department orders are
purchased from service products (sheltered employment factories) by the
end of March 2011.
 Facilitate the achievement of employment equity target for disability by
businesses by establishing a pilot to train and place at least 50 learners
per shelter employment factory in the mainstream economy by the end of
March 2011.
Labour Policy and Labour Market Programmes
43
Measureable objectives:
Improve the status of vulnerable workers by:
 Reviewing the working conditions of 3 industrial and economic
sectors, (civil engineering, hospitality, and contract cleaning),
learnership and the ministerial determination on conditions of
employment for employees in expanded public works programmes by
March 2011.
 Establishing the feasibility of promulgating sectoral determinations in
the unskilled labour and welfare sectors by March 2011.
 Developing a report on the norms and bench marks for proportionate
income differentials by March 2011.
Labour Policy and Labour Market Programmes
Measureable objectives: (cont)
 Address developments in the labour market, including labour broking
and legislative compliance and enforcement, by publishing amendment
bills to the labour relations act (1995), the basic conditions of
employment act (1997) and the employment equity act (1998) by March
2011.
 Strengthen employment equity implementation and enforcement
mechanisms by conducting a director-general review at 60 JSE security
exchange listed companies by March 2011.
44
Labour Policy and Labour Market Programmes
Measureable objectives: (cont)
 Create decent work and sustainable livelihoods by developing and
implementing a research, monitoring and evaluation agenda, which
includes providing labour market information and statistical analysis and
facilitating compliance with international obligations and multilateral and
bi-lateral relations by March 2011.
 Manage the implementation of the LRA (1995) by extending collective
agreements and registering or de-registering labour organisations within
90 days.
45
 Assistance to the DoL by the Select
Committee on Labour and Public Enterprise
Assistance by the Select Committee
1.
Inputs on how the DoL can improve service delivery, particularly in
the provinces.
2.
Ensure parliamentary constituency offices liaise and form
partnerships with DoL provincial, regional offices and Labour
Centres in the various provinces.
3.
The DoL encourages site visits to its development projects in the
various provinces.
4.
The Committee should invite the DoL officials in their community
outreach initiatives for effective partnership in service delivery
improvement.
5.
Regular feedback from the Committee regarding service delivery
issues that affect the DoL in the provinces.
6.
Orientation of the Select Committee on the reconfigured DoL.
47
Thank you